An S Corporation and a Limited Liability Company (LLC) have several similarities such as avoiding double taxation. However, these two types of structuring a business have some differences, which in the long term can be very important. An S corporation is the best option for small businesses instead of a limited liability company for several reasons. First the S corporation is a corporation elected by the IRS that has existed for years while LLC is the youngest business structure, some of its laws and regulations are still in process.

Second, the advantage of choosing S Corporation as a business structure is that it has a perpetual existence. If one of the shareholders withdraws or dies, it can continue to operate without problems. On the other